Wall Street, New Tax Bill, the Economy

No one is going to read

all of this posting

so

Bottom line on

Wall Street,

The New Tax Bill,

and

Trump said, “It’s the Economy stupid”!

If you are rich, you get richer under trump.

If you have a lot of
stocks and Bonds
so far it is good.

If you have both
your economy looks good for now.

What is Wall Street?

A place for people with a lot of stocks to hunker down and try to get more stocks and/or make more money!

Wall Street affects the U.S. economy in a number of ways, the most important of which are –

Wealth Effect: Buoyant stock markets induce a “wealth effect” in consumers, although some prominent economists assert that this is more pronounced during a real estate boom than it is during an equity bull market. But it does seem logical that consumers may be more inclined to splurge on big-ticket items when stock markets are hot and their portfolios have racked up sizeable gains.

Consumer Confidence: Bull markets generally exist when economic conditions are conducive to growth and consumers and businesses are confident about the outlook for the future. When their confidence is riding high, consumers tend to spend more, which boosts the U.S. economy since consumer spending accounts for an estimated 70% of it.

Business investment:  During bull markets, companies can use their pricey stock to raise capital, which can then be deployed to acquire assets or competitors. Increased business investment leads to higher economic output and generates more employment.

Tax bill

Well NBC writes this - Congress approved a sweeping $1.5 trillion tax bill on Wednesday that slashes rates for corporations, provides new breaks for private businesses and reorganizes the individual tax code.

The Senate passed the GOP bill early Wednesday morning and the House then voted on it for a second time to fix technical problems with the legislation, the final step before it's sent to President Donald Trump for his signature. No Democrats in either the House or Senate backed the measure.

It is the president's first significant legislative accomplishment and the biggest tax overhaul in a generation.

CNN writes it this way - Highlights of the bill

The plan -- which critics say is heavily weighted to ease the tax burden on businesses rather than the middle class -- drops the corporate tax rate down from 35% to 21%, repeals the corporate alternative minimum tax, nearly doubles the standard deduction for individuals and restructures the way pass-through businesses are taxed.

The bill keeps seven personal income tax brackets and lowers that tax rates for most brackets, including dropping the top rate to 37% from 39.6%.

For more on what exactly is in the bill's policy, check out CNN Money's full rundown.

The Joint Committee on Taxation found that all income groups will, on average, see a tax cut in 2019, though the projections worsen over time. In 2019, all taxpayers would see an 8% tax cut. The JCT, however, found that by 2027 taxpayers earning up to $75,000 would receive a tax increase -- this would stem from the sunsetting individual rate cuts in the final GOP bill, along with the repeal of Obamacare's individual mandate.

Trump said, “It’s the Economy stupid”!

Forbes QUOTE OF THE DAY

is

It is easy to be popular. It is not easy to be just.

This Saturday is the one year anniversary of President Donald Trump’s inauguration. Over the past year, the stock market has boomed, GDP growth has improved and unemployment is at an almost 17-year low. However, job gains were lower than any of the past six years and wage growth was less than last year.

President Trump inherited an economy that was on a good trajectory with solid job growth and low unemployment. Trumps own mark on the economy will be based on the long-term impact of his new tax laws.

The biggest economic questions going forward are how much growth will tax reform generate, and what will Trump do with various trade agreements such as NAFTA? These could determine what happens to the U.S. economy and the stock markets over the next few years.

We have developed a publicly available Google

 document,

which tracks over 100 indicators to help evaluate the progress and potential of “Make America Great Again.”